Attempts 1. Average 1/2 2. Determining opportunity cost Juanita is deciding whether to buy a dress that she wants, as well as where to buy it. Three stores carry the same dress, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, Discounted price located 15 minutes away from where she works, and pay a Marked-up price marked-up price of $103 for the dress: Juanita's office Original price Travel Time Each Way Price of a Dress Store (Minutes) (Dollars per dress) Local Department Store 15 103 Across Town 30 87 Neighboring City 60 64 Juanita makes $16 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $16 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location. Opportunity Cost of Time (Dollars) Price of a Dress Total Cost Store (Dollars per dress) (Dollars) Local Department Store 103 Across Town 87 Neighboring City 64 Assume that Juanita takes opportunity costs and the price of the dress into consideration when she shops. Juanita will minimize the cost of the dress ifr she buys it from the Grade It Now Save & Continue Continue without saving
Attempts 1. Average 1/2 2. Determining opportunity cost Juanita is deciding whether to buy a dress that she wants, as well as where to buy it. Three stores carry the same dress, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, Discounted price located 15 minutes away from where she works, and pay a Marked-up price marked-up price of $103 for the dress: Juanita's office Original price Travel Time Each Way Price of a Dress Store (Minutes) (Dollars per dress) Local Department Store 15 103 Across Town 30 87 Neighboring City 60 64 Juanita makes $16 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $16 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location. Opportunity Cost of Time (Dollars) Price of a Dress Total Cost Store (Dollars per dress) (Dollars) Local Department Store 103 Across Town 87 Neighboring City 64 Assume that Juanita takes opportunity costs and the price of the dress into consideration when she shops. Juanita will minimize the cost of the dress ifr she buys it from the Grade It Now Save & Continue Continue without saving
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:**Determining Opportunity Cost**
Juanita is deciding whether to buy a dress that she wants, as well as where to buy it. Three stores carry the same dress, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $103 for the dress.
A map is displayed showing three pricing options: "Marked-up price," "Discounted price," and "Original price," in relation to Juanita’s office.
**Travel Time and Dress Pricing Table:**
| Store | Travel Time Each Way (Minutes) | Price of a Dress (Dollars per dress) |
|--------------------------|-------------------------------|--------------------------------------|
| Local Department Store | 15 | 103 |
| Across Town | 30 | 87 |
| Neighboring City | 60 | 64 |
Juanita makes $16 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $16 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. Ignore the cost of gasoline and depreciation of her car when traveling.
Complete the following table by computing the opportunity cost of Juanita’s time and the total cost of shopping at each location:
| Store | Opportunity Cost of Time (Dollars) | Price of a Dress (Dollars per dress) | Total Cost (Dollars) |
|--------------------------|-----------------------------------|--------------------------------------|----------------------|
| Local Department Store | | 103 | |
| Across Town | | 87 | |
| Neighboring City | | 64 | |
Assume that Juanita takes opportunity costs and the price of the dress into consideration when she shops. Juanita will minimize the cost of the dress if she buys it from the _______.
The exercise encourages calculating opportunity costs to determine the most financially sensible option for Juanita.
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